Goh Ban Huat buys land in KL for RM39.5m

PETALING JAYA: Goh Ban Huat Bhd’s (GBH) wholly owned subsidiary GBH Land Sdn Bhd is acquiring a piece of freehold land measuring 9,924.814 square metres from Puncak Melati Sdn Bhd for RM39.53 million.

GBH’s board of directors said in a Bursa Malaysia filing each square metre for the property located in Mont Kiara would cost RM3,982.64, which is below the market value of RM4,600 per square metre as per Raine & Horne’s Valuation Report.

The freehold land held under Hakmilik Geran Mukim 1699 Lot 2356, Mukim Batu, Daerah Kuala Lumpur, is about 1km away from The Plaza Mont’ Kiara and 1 Mont Kiara Mall.

GBH sees the acquisition as an opportunity for it to invest in prime property at a reasonable price.

“By virtue of the property’s ideal location and close proximity to the Kuala Lumpur City Centre and within the well-known Mont Kiara developments, the board of directors of GBH believes that the proposed acquisition will benefit from future capital appreciation or an opportunity for the group to develop the land when the sentiment in the property market improves,” its board of directors said.

The acquisition will be financed with internally generated funds and is expected to be completed within three months. It will not have any impact on GBH’s earnings and gearing ratio for the financial year ending March 31 2018, but is expected to contribute positively to future earnings.

GBH’s shares gained 0.75% to close at RM1.34 yesterday with some 14,000 shares changing hands. Its market capitalisation stood at RM250.04 million.